The world's largest ski area operator is responding to decreasing profits.
Friday, September 27, 2024, NewEnglandSkiIndustry.com
In the wake of declining earnings, Vail Resorts announced a "Resource Efficiency Transformation Plan" which will eliminate nearly 2% of its workforce, include 14% of its corporate workforce. Front-line positions will reportedly see minimal impact.
According to the press release issued yesterday, impacted employees will be given the opportunity to apply for open positions elsewhere in the corporate network. The plan is expected to save $100 million in annual expenses. Two years ago, Vail implemented a company-wide $20 minimum wage and other HR-related initiatives at a cost of $175 million.
The announcement was coupled with the corporation's fiscal year 2024 earnings announcement, in which net profits declined 14% as compared to 2023. In addition, the number of passes sold for the 2024-25 season is down 3% as compared to a year ago, though the corresponding revenue is up 3%.
CEO Kirsten Lynch stated, "Skier visitation declined 9.5% compared to the prior year, driven by unfavorable conditions across our resorts in North America and Australia, combined with the impact of broader industry normalization post-COVID following record visitation in North America during the 2022/2023 ski season."
Driven by its popular Epic Pass product, Vail Resorts has seen massive growth in recent years. As part of its 42-resort global network, Vail operates Attitash, Crotched, Sunapee, and Wildcat in New Hampshire and Okemo, Mt. Snow, and Stowe in Vermont.
